The royalty only attaches to the lodes in the current mine lease and doesn't include any wins from rework of tailings.
Good to see a new highly qualified CFO joining the team. Hopefully the nonsense accounting where we paid $2m in royalities to Freepoint last year and booked Finance and Interest costs of $14m to the balance sheet which turned the $22.5m EBITDA into a loss with the equally crazy write off of $10m of Mine development associated with this years production.
A pretty impressive line up of talent to present as an Investment Quality Company with substantial liquidity to the market in preparation for HGO's entry into the S&P indices which will drive Institutional participation in ownership of our soon to be our unHidden gem Opportunity.
We could find ourselves waking up to a pleasant surprise in the not too distant future.
De risking ???? Royaltys are less risky than equity. Freepoint just swapped royaltys for equity. A big vote of confidence that shareholders stand to do better than the 35% compound rate of return that the royalty stream looks like delivering.
Whether it comes to us punters partly in dividends or all in capital growth in the share price doesn't matter. As long as it arrives we will be happy players.
HGO Price at posting:
3.8¢ Sentiment: None Disclosure: Held
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